Category Archives: news

I just had like a million hours of class — with the last class culminating in a raging debate over the format of our final — and then WALKED home so I’m kind of tired. I know, my life is really hard. But thanks to the New York Times News Alerts, I was among the first to read this little ditty, which I will cut and paste for your reading pleasure, because again, I’m tired.

McCain Aide’s Firm Was Paid by Freddie Mac

One of the giant mortgage companies at the heart of the credit crisis paid $15,000 a month to a firm owned by Senator John McCain’s campaign manager from the end of 2005 through last month, according to two people with direct knowledge of the arrangement. The disclosure contradicts a statement Sunday night by Mr. McCain that the campaign manager, Rick Davis, had no involvement with the company for the last several years.

You can read more about the issue here. As I’ve mentioned before, I don’t exactly understand this stuff, but here’s a little more info to help us understand:

 

Mr. Davis’s firm received the payments from the company, Freddie Mac, until it was taken over by the government this month along with Fannie Mae, the other big mortgage lender whose deteriorating finances helped precipitate the cascading problems on Wall Street, the two people said.

They said they did not recall Mr. Davis’s doing much substantive work for the company in return for the money, other than to speak to a political action committee of high-ranking employees in October 2006 on the approaching midterm Congressional elections. They said Mr. Davis’s firm, Davis Manafort, had been kept on the payroll because of his close ties to Mr. McCain, the Republican presidential nominee, who by 2006 was widely expected to run again for the White House.

Mr. Davis took a leave from Davis Manafort for the presidential campaign, but as an equity holder continues to benefit from its income. No one at Davis Manafort other than Mr. Davis was involved in efforts on Freddie Mac’s behalf, the people familiar with the arrangement said.

 

And all this is on the heels of the McCain campaign releasing ads tying Obama to Fannie Mae chiefs. Hmm. Nice straight talk there, Maverick. But don’t worry, America: my Belgian friend just assured me that Obama and Biden have it in the bag.

[Posted by Mallory]